GM Changing Media Relationships Amid Pressure

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General Motors Co. says it is changing its "approach to diverse media relationships" after Black-owned media executives called out the automaker in prominent print ads last month.

On Friday, GM said it has adopted an action plan with five components, including an increase in its spending with diverse media. The automaker said it plans to double its commitment for spending with Black-owned media from 2% in 2021 and 4% by 2022, with a goal of reaching 8% by 2025.

GM is implementing an Inclusive Measurement Rubric to "allow for more flexibility based on the size and scale of the media organization." Lastly, GM, along with its media buying agencies, will use a "multi-factor analysis" to select diverse media that assesses "capabilities, reach and analytics to drive more opportunity for diverse media."

“This action plan will transform our engagement model with diverse media in a sustainable way,” Deborah Wahl, GM global chief marketing officer, said in a statement. “Over the course of several weeks, we met with many diverse-owned media organizations. We are grateful for the transparency and spirit of collaboration, which helped us frame this inclusive approach.”

Here are the five key parts of the plan GM said it will provide:

1. Better measurement tools such as Nielsen ratings
2. More favorable payment plans from GM and multiyear advertising deals.
3. Boost its ad spend with Black-owned media from 2% to 8% by 2025.
4. Earmark $50 million over 10 years to further support diversity in marketing and sponsorships beyond advertising.
5. GM will also hold a "summit" on May 14 exclusively with leaders of companies with diverse ownership. This will allow those leaders to pitch their proposals to GM ahead of the mainstream media pitch session that occurs later in the month, thereby giving them  earlier access to GM's advertising budget allocation process .

Byron Allen, owner of The Weather Channel and other outlets, and six other executives from Black-owned media companies signed a full-page ad that appeared in a Sunday Detroit Free Press criticizing GM CEO Mary Barra, claiming she refused to sit down with them. The ad later ran in The Wall Street Journal. 

In 2020, GM spent $2.7 billion on advertising and promotions, according to an SEC filing.